Firestorms have ravaged various parts of the country. Some of the most widely publicized and destructive fires have charred California. But now, in the aftermath, fire victims are storming Sacramento looking for insurance reform. Hundreds of people who have lost their homes are now battling their insurance companies.

It's a warning for all of us to seek clarification if we don't understand our insurance policies, before a disaster strikes.

In May, nine San Diego, California residents and firestorm victims went to Sacramento to support five bills that were developed as a result of the Southern California wildfires and are being presented together under the Homeowner's Bill of Rights.

The bills deal with policy renewal, disclosure of broader insurance coverage, longer periods to repair or rebuild or replace their homes, establishment of a uniform measurement of "actual cash value," and depreciation of labor costs.

One bill would give the California Department of Insurance authority to sponsor a mediation program to help expedite conflicts between Southern California wildfire victims and their insurance carriers.

"These bills won't directly, except for the mediation bill, help the people who lost their homes in the fires of last year, but they will help people in the future. So it's a tremendous show of humanity that all these people are taking time to help people not have to go through what they went through personally," said Gary Gartner, Deputy Press Secretary for the State Insurance Commissioner, John Garamendi. Garamendi is sponsoring the bills that were initiated by four democrat legislators. Gartner says the Commissioner is optimistic that the fire victims' support will help the bills pass.

While the bills are making their way through the legislative system, many homeowners are reeling in confusion.

California resident, Dian Black, whose home suffered water damage after a San Diego fire, says wording, such as when the term replacement is used, isn't clear in policies. "[Fire victims] are under the impression that they are 100 percent covered," said Black.

But like many fire victims, Black discovered her insurance coverage wasn't adequate.

Pete Moraga is a spokesperson for the Insurance Information Network of California -- a nonprofit, non-lobbying, media-relations organization that is supported by the property-casualty insurance industry.

"The wording of policies is governed by state statute, which means that we're governed by law as to the name and the way that they're marketed," said Moraga.

There are three different types of homeowners' insurance policies. One is an actual cash value. That one represents an insurance payout that would take into consideration any depreciation of the structure and depreciation for contents.

The replacement cost policy does not take into consideration depreciation but it is bound by limits of the policy. "So if you buy $200,000 worth of coverage that's the limit of the policy," said Moraga.

The guaranteed replacement policy operates without any type of limit on the policy. But according to Moraga, this type is rarely offered or sold in California.

Many fire victims are also criticizing insurance companies for what they say is an extraordinarily lengthy time for the processing of their claims. But Moraga points to a recent survey the organization conducted, "As of April 12th we did a survey that represents 66 percent of the homeowner insurance market in California and by April 12th we had already completed 84 percent of all of the claims from our survey sample. So out of 12,902 residential fire claims 10,811 had been completed by April 12th," said Moraga.

It's no doubt that legislative fuel to reform homeowner insurance policies has been ignited; now it's just a matter of time to see if it'll keep burning through Capitol Hill.

Insurance Tips:

• Home security alarms, smoke detectors may give you a discount on your policy.

• Take inventory of your household items -- it's best to write down and photograph and/or videotape, then keep in a fireproof place.

• Write down the serial numbers and the value of your personal property.

• Review your policy and ask your agent for clarifications.

• Be prepared to be charged more if you have an in-ground pool or trampoline.

• Consider having an appraisal of your more unique personal property such as heirlooms, expensive antiques, jewelry and more.

Published: June 15, 2004

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Phoebe is a writer, speaker, and author. She is the Director of Business Development for Quality Service Certification and a trainer in customer service for the real estate industry. She is a Realtor with The Guiltinan Group, a division of Prudential California Realty. Her articles, feature stories, and columns appear in various publications including The Coast News, Del Mar Village Voice, and Rancho Santa Fe Review in San Diego. Phoebe worked for KGTV/10News in San Diego as a Newscaster, Reporter and Community Affairs Specialist for more than a decade. Phoebe's writing is also featured in Donald Trump's book: The Best Real Estate Advice I Ever Received. She is the author of If the Trash Stinks, TAKE IT OUT!: 14 Worriless Principles for Your Success. Contact Phoebe at 858.259.3646 or . Visit PhoebeChongchua.com for more information.